7th February 2025
Regulated Buy to Lets are an option for property owners wanting sell their property and help family at the same time. Read on to learn what we can do to help clients in this situation.
At Vernon Building Society, we pride ourselves on taking a thoughtful, common-sense approach to lending. Regulated BTL is a great solution for those who have a property they currently have no plans for and want to help a family member. One recent case demonstrates how we embrace complexity to provide positive outcomes for our clients.
The applicants, a married couple of 67 (retired) & 62, want to remortgage and let their main residential property to their son, his fiancée and 3 children. The applicants have access to another property through work where they’ll live during this arrangement. The remortgage also involves some capital raising to pay for a new boiler in the property to be let. At the end of the term, when the second applicant retires, they intend to sell the property and downsize.
Regulated BTLs can be a sticking point for other lenders, but we’re always ready to say yes. The second applicant is on a 3-year fixed term contract in a new occupation with no previous employment history in that field, but considering the application as a whole, the LTV is low, the incomes are steady and they have a genuine reason to do this mortgage to help family, we have no reason to let this hold the application back.
The circumstances of the case may not be standard, but a careful look into the applicants and our common-sense underwriting approach, we were able to say yes and provide a solution that worked for all.
At Vernon Building Society, we specialise in helping borrowers with unconventional circumstances. Whether it's limited credit history, retirement considerations, or unique property purchases, our human underwriters are committed to finding solutions where others might not.
If your clients have a story like this, talk to us today. Let us take a personal view of your case—no algorithms, no rigid thresholds, just common-sense lending designed to meet real-life needs.
Jack joined the team late in 2021 after being an adviser for 7 years. He started as a Desk Adviser, but with his knowledge and experience, has now taken on the role of Business Development Manager.